Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2013, a company issued 10-year, 10%

On January 1, 2013, a company issued 10-year, 10% bonds payable with a par value...

90.2K

Verified Solution

Question

Accounting

On January 1, 2013, a company issued 10-year, 10% bonds payable with a par value of $500,000 and received $442,647 in cash proceeds. The market rate of interest at the date of issuance was 12%. The bonds pay interest semiannually on July 1 and January 1. The issuer uses the straight line method for amoritzation.

1) What is the amount of the discount or premium on these bonds?

2) How much cash is required each time an interest payment is made?

3) How much interest expense should be recognized every time interested is paid (semiannually). Round to the whole dollar

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

8 1 point Find the volume of a cylinder with a radius of 2 cm...

Geometry
Q

Review Questions1- Explain why innovation matters tocompanies.2- How can companies manage resistance to...Review Questions1-...

Accounting
Q

Research report on the topic : "Communication Technology in the Past'.

General Management
Q

Amore Pacific Case Analysis: External and Internal Analysis

General Management
Q

Angraecoid orchids provide nectar to the African moths. The moths in turn help in pollinating...

Biology
Q

Determine the shape of the distribution pictured below and the measure of center that should...

Statistics
Q

(c) Calculate the debt-to-equity ratio under Consolidated and Equity Method. (Round your answers...

Accounting
Q

McKesson & Robbins : a milestone in auditing W.T .Baxter summarize the artical in 2-3...

Accounting
Q

1. What are the distinguishing characteristics between a public charity and a private foundation? 2....

Accounting
Q

On October 1, 2014, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers...

Accounting
Q

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31...

Accounting
Q

A corporate charter specifies that the company may sell up to 20 million shares of...

Accounting